Republican budget cuts would kill jobs, slow recovery

New economic analysis reveals that a projected GDP growth of between 3 and 4 percent could be cut in half if the budget cuts voted in by House Republicans are allowed to pass into law.

Analysts at Goldman Sachs predicted that Federal Reserve projections of economic growth of between 3.4% and 3.9% for 2011 would be reduced to about 2 percent.

Republicans want to $61 billion from the federal budget this year to help pay for a tax cut for millionaires and billionaires they forced through Congress last December.

According to the Economic Policy Institute, the proposed kill would cost 800,000 jobs.

Republican plans to force a government shut-down would have sevre economic consequences as well. In order to leverage passage of their budget plans Republicans plans would cost the economy about .2 percent in GDP each week of the shut-down, Goldman Sachs also noted.

40,000 federal employees would be laid off as a result. Social Security payments would also be delayed as a result of a Republican shut-down.

Post your comment

Comments are moderated. See guidelines here.

Comments

  • They just want to kill jobs for working families so they can give more to the rich.

    Posted by chuck m., 02/24/2011 3:40pm (7 years ago)

RSS feed for comments on this page | RSS feed for all comments